Best’s Special Report: U.S. Property/Casualty Industry Sees Significantly Improved Underwriting Gain in First Nine Months of 2025

• December 12, 2025 08:38 AM (EST)

    

//BestWire// - The U.S. property/casualty (P/C) industry recorded a $35 billion net underwriting gain in the first nine months of 2025, a significant improvement from the nearly $4 billion gain recorded in the same prior-year period, according to a new AM Best report.

These preliminary results are detailed in a new Best’s Special Report, titled, “First Look: Nine-Month 2025 US Property/Casualty Financial Results,” and the data is derived from companies whose nine-month interim period statutory statements were received as of Dec. 1, representing an estimated 98% of total industry net premiums written.

According to the report, muted catastrophe losses during third-quarter 2025 led to a 7% increase in net premiums and virtually no change in losses and loss adjustment expenses incurred, as compared with the prior year’s nine-month period. The property/casualty industry’s combined ratio improved by four percentage points to 94.0, with catastrophe losses accounting for an estimated 8.0 percentage points on the nine-month 2025 combined ratio, down from 8.7 points in the first nine months of 2024.

A 5.9% increase in net investment income aided the nine-month 2025 underwriting gain in boosting pretax operating income by 52% to $102.4 billion. However, an 80% reduction in net realized capital gains, driven primarily by a combined $60.5 billion decline at three Berkshire Hathaway companies, contributed to the industry’s net income declining by 23%, as compared with the same prior-year period, to $100.9 billion.

To access the full copy of this special report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=360907.

Property And Casualty Insurance Press Release A.M. Best Rating Services, Inc. Property And Casualty Insurers